At A Glance: The Cost Of Cable Vs. A La Carte

Combining current streaming services including Netflix, Hulu, CBS All Access and the expected price of HBO's service, which starts next year, would run you about half of the average price of monthly cable and satellite television service. If you're a sports fan, sorry, the streaming services won't do it for you alone. But adding an a la carte option to your basic cable subscription might offer you more choice than buying up on the next rung of your cable or satellite service.

Is a la carte streaming a better deal?

Combining current streaming services including Netflix, Hulu, CBS All Access and the expected price of HBO’s service, which starts next year, would run you about half of the average price of monthly cable and satellite television service.

If you’re a sports fan, sorry, the streaming services won’t do it for you alone. But adding an a la carte option to your basic cable subscription might offer you more choice than buying up on the next rung of your cable or satellite service.

Even if other networks jumped on the standalone bandwagon, trying to buy all your favorite channels a la carte would add up quickly, says FBR analyst Barton Crockett.

“The way things are priced, you won’t be able to get more than four or five channels for less than your pay-TV bill now, and even getting two or three channels will be a significant portion of that bill,” he said in an interview Monday. “I think because of that there will be a strong incentive for people to sign up for a (cable) bundle.”

Here’s a look at how the costs stack up:

BRAND CONNECTIONS

Netflix: starts at $8.99 a month for streaming only service. Includes original programing, past seasons of popular TV shows and a wide range of movies.

Hulu Plus: $7.99 a month. Includes selected new and older shows from networks including Fox, ABC, CBS, NBC and the CW and cable channels like Comedy Central, Nickelodeon and Bravo. Original programming, movies and Latino and British shows are also available.

HBO (estimated): $15 a month or more. Includes HBO original series, movies, sports, comedy and documentaries.

CBS All Access: $5.99 a month. Includes 15 current prime-time shows such as “The Good Wife” and “Survivor” available the day after they air, the ability to stream CBS stations live in 14 markets and to watch previous seasons of current shows, as well as older shows from both CBS and other networks like “Twin Peaks” and “Cheers.” It does not include live-streaming of sporting events, including NFL coverage.

Total for all four services: $37.97

Amazon Instant Video: Included free with $99 Prime loyalty club membership

Average cable subscription (combined price of basic service and the most subscribed cable programming service excluding taxes, fees and equipment charges): $64.41, per the FCC.

Average satellite subscription (combined price of basic service and the most subscribed cable programming service excluding taxes, fees and equipment charges): DirecTV $63.99; DISH Network $59.99, per the FCC.


Comments (8)

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Julien Devereux says:

October 21, 2014 at 9:28 am

And over the air TV costs EXACTLY ZERO dollars a year. Screw the cable companies; they don’t care about you, just your wallet.

    Wagner Pereira says:

    October 21, 2014 at 9:57 am

    With all due respect, and I cannot believe i am defending this, but what Company’s focus isn’t the bottom line?

    Scott Cote says:

    October 21, 2014 at 1:25 pm

    With more due respect, will people who have access to OTA please (at least) realize that some of us don’t! I live in a heavily populated bedroom community about 25 miles north of Los Angeles, and can’t see our Mt. Wilson transmitters. So all these industry machinations are important, interesting, and frustrating to us. Which one? Just pick a day….

    Wagner Pereira says:

    October 21, 2014 at 4:33 pm

    LA is a very difficult TV Metro for OTA. A line from Hollywood through Beverly Hills through Brentwood to Pacific Palisades is shaded by the Santa Monica Mountains. Malibu is totally shielded from Mt Wilson by the same, while San Diego rolls in like a local OTA. Then North of LA, as you note, you also pay the price.

Don Thompson says:

October 21, 2014 at 4:35 pm

ACA To CBS: Don’t Cable TV Subscribers Deserve Same rights As ‘CBS All Access’ Customers?

American Cable Association President and CEO Matthew M. Polka issued the following statement on Oct. 17 regarding CBS’ announcement launching “CBS All Access,” a $5.99 a la carte service available only to broadband Internet customers:

“ACA has a simple message for CBS: Why won’t you give cable subscribers the same rights you’re evidently giving broadband customers under the ‘CBS All Access” plan?

“Based on what we know so far about the ‘CBS All Access’ plan, consumers will soon be able to decide for themselves whether they want to pay to view online the content broadcast by CBS O&O stations and participating CBS affiliates. Consumers will be able to choose to subscribe to the CBS service without having to subscribe to the other broadcast networks.
“Consistent with ACA’s advocacy in support of the Rockefeller-Thune Local Choice proposal, ACA believes that cable customers should have the same viewing rights that broadband customers will soon have. Cable customers should no longer be forced by regulation to subscribe to all broadcast stations carried by a cable operator as a condition to receiving any broadcast station.

“The inability to opt out of subscribing to a TV station is caused by a broken and archaic retransmission consent regime imposed by Congress decades ago. Broadcasters should allow consumers to buy broadcast signals from cable operators on a la carte basis in the same way that CBS is offering its streaming service to broadband customers on a la carte basis.”

Please follow me on Twitter @TedatACA

    Wagner Pereira says:

    October 21, 2014 at 6:35 pm

    No, cable and internet do not have the same rights. Just look how Broadcast Rights are not the same as online rights – and look no further than CBS All Access that does not have online rights to the NFL. Now, if you want to contend that Cable and Online are the same, please drop the extra charge for internet from ACA members.

Keith ONeal says:

October 21, 2014 at 6:18 pm

I think that CBS should include the CBS Sports Network and Showtime as part of CBS All Access.

    Wagner Pereira says:

    October 22, 2014 at 2:32 am

    Will not happen. CBS All Access is to set anchor pricing. Showtime will be a la carte, like HBO…ditto CBS Sports Network IF they can get all the online rights lined up.